You will only be able to get 25K for it through insurance. Your non-liability insurance premium is akin to interest you pay on this value, by the way. Plus, you will never be able to sell the car for this money unless you are very lucky.

is this 35K the price you can sell the Tacoma for or is it dealer retail? Your losses are calculated based on what you bought it for less what you sold it for, not what the dealer lists your trade in at.

A million net worth, not savings. If you paid off your house, plus have a retirement plan, etc, this all adds up.. Your actual bank account should merely have enough to pay for the car plus emergency fund. This is not as far fetched as it might seem and you do not have to swim in money to have a $1M net worth. You’d ha…

Yoh call someone who has built an 8 figure net worth from scratch an idiot. Where do you place yourself in this scale of things? What have you built. I'd humbly eat crow if you are Bill Gates.

Personal beliefs notwithstanding,  I think it is safe to say that someone who has built an 8+ figure net worth from scratch is more of a financial expert than someone who... didn't? 

The dude may be a POS, sure, but the post is not by itself racist. If i say write KKK is a bunch if white piles of shit that need to die - do you think that this is racist, too? 

I am not giving anyone any advice. None at all. Just expressing my opinion based on about 25 years of adulting starting from a thousand dollars in cash and a small bag I arrived to this country with. Cheers.

Ahahaha. Living paycheck to paycheck is from TAKING loans, not from avoiding them. Avoiding the loans gives you exactly the opposite: it gives you cash to NOT live paycheck to paycheck. Lolsy lols. Why? Because you do not have loan payments. (Did I just have to spell that out???). Sorry for the capslock, but your…

the rich do not buy expensive cars in many cases. I am not rich, but i do hang out with 7 figure people in occasion. A 10 year old lexus or a recent Buick sedan is not an unusual daily driver for someone with 10+M net worth.

this is a bad idea for multiple reasons. Cash price will be less unless you are a savvy investor and can make it up with interest from investing. More importantly, people tend to go with higher trim or more optioned vehicles with financing, which is a huge waste of money they do not have. So yes, bad idea, unless you…

yes, the dealer will grill you no matter how you pay. You are more likely to get away the cheapest if you write a check. Especially if the dealer wants to move units. Believing in 0% financing as free money is cute.

Dear Tom. The 60% loss of value figure is not about comparing prices of new versus 4 year old used cars on a dealer’s lot. It is about how much an average Joe who had purchased the new Corolla 4 years ago would be able to sell it for today. This is monet spent versus money recouped. I am surprised that this needs to…

i had to save for 3 years to buy my first car, used. A big reason why 20 years later I was able to buy 4 new cars total with cash. The last time they offered 0% financing was instead of an additional $750 discount. Meh. Not worth it. Just wrote a check and drove off.

if you have cash to pay for a car and instead finance the car and invest the cash- that is awesome. This does have a certain, if modest, degree or risk, but this is a good strategy. The issues begin when people are broke and are buying new cars equating credit lines with savings accounts.

Your argument, as you wrote it, is correct. What I do not know is whether Ramsey has ever said that buying with cash is cheaper, potential cash savings aside. I thought what Ramsey says, to paraphrase, is that one should not treat approved credit line as extension of the bank account. You should not buy a car, whether…

What you gave as an example is not a fact.  It is an opinion.  The same as Ramsey does. I fo not believe he gives out facts often, if at all. That's not what his show is about. It is about opinion.

Of course, those are different.  And depreciation is less predictable,  depending on how long you own the car.  Not depreciation itself, but the cost of ownership. These two are pretty darn close when you estimate your net worth, though. 

Well, what you had done is a rare case. Yes, you proved it exists. Secondly, the choice between a lease incentive and 0% APR sounded like was directly from LR. The actual dealer had certainly had additional room for negotiation in lieu of 0% APR.

Smoking is not binary. You can have an occasional cigar and be done with it. You can have a sigarette once on a Friday. You can be a 3-pack a day smoker. MDs define smoking history in pack-years for this very reason. It is a continuum, not a binary.  Same for car or cc loans. There is a spectrum, but none of that is…

On the contrary, the analogy, while not perfect, is legit. In both cases, education and choice can help. In both cases, chance plays a big part in the outcome. You can be irresponsible with money and make it. Someone else may at the same time hit a rough patch for an unrelated reason. Like a car accident, death in the…